ISKANDAR MALAYSIA FORECAST

  • Iskandar Malaysia will not only surpass the Klang Valley but has the potential to become an economic powerhouse in South East Asia, with the right policies in place. JB CIQ property stands to gain the most from the Johor RTS initiative.
  • Forecasting Iskandar region must include factoring in the Singapore factor. Singapore has many upcoming socio-economic challenges that are not reported in any detail in the mainstream news.
  • The Singapore government’s role is primarily focused on social governance for the greater good and they have an excellent track record on this.
  • But they are not investment advisors. Preservation and growth of personal assets is never their goal.
  • The average Singaporean, living in HDB, may not have fully grasped the implications of their HDB flat’s actual value.
  • A large proportion of these HDBs are getting closer to the end of lease with each passing year.
  • 80 percent of Singaporeans live in 99-year leasehold HDB flats.
  • By the time these flats reach two-thirds of that term (60 years), banks are already reluctant to offer loans. This will have a flow-on effect on the value of mid-life HDBs around the 40-50 year range.
  • For many Singaporeans, the HDB constitutes a large portion of their lifetime savings and will gradually deplete as HDB heads towards maturity. The Singapore government recognises it but offers pseudo-solutions such as lease-buy-back arrangements.
  • It guarantees ‘buy-back-value’ but that value is devoid of capital appreciation and does nothing to ensure a comfortable retirement for the elderly.
  • Iskandar region and JB CIQ property has the solution to these issues. Some other issues (listed below) will be discussed separately and they have momentous implications for Iskandar properties.
  • They are:
    • Singapore’s ageing population
    • Singapore’s low birth rate and implied imported new citizenship.
    • Large population of Malaysian baby-boomers in retirement phase
    • Singapore’s healthcare capacity
    • Cost of living and quality of life for middle-lower income retirees.
    • Currency disparity and real estate price differential.
    • Singapore’s dependency on foreign workers and where to house them.
  • Efficient connectivity with Singapore is the single most important factor and starting point to jumpstart Iskandar’s economic status.
  • The only hindrance is those bickering over the cost of transport links construction, who fail to see the enormous multiplier effects that could have turned Iskandar into a Shenzhen years ago.

Commentary

  • Iskandar Malaysia information is derived from 8 locations with its unique characteristics.
  • Readers are advised to thoroughly research Iskandar region before investing or finding a new home by following the path below:

We are constantly updating this area’s DEMAND and SUPPLY, location review in HOTSPOT and future PRICES in our FORECAST section.